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9 Things Advisers Can Do to Connect with Younger Clients

There’s a lot of information out here about the characteristics of millennials and Gen Z (millennials were born between 1980 and 1994, and Gen Z from the mid-1990s to the early 2000s). But, there’s not much out there on how these characteristics impact financial advisers and what advisers should do to make sure they’re well positioned for these future clients.

So, here are some characteristics of younger clients along with some (relatively easy) ideas to help financial advisers to be more relatable to younger generations.

They’ve never used a desktop computer. Imagine them walking into your office and thinking, “What are those big boxes under everyone’s desk?”

Easy fix: Have laptops and iPads. Don’t have desktop computers in your office; at least not in client meeting rooms.

They take notes on their smart phone. But, they know that older people, particularly people in positions of authority, think they’re texting.

Easy fix: During a meeting, say “…and hey… if you want to take notes on your phone, please go ahead.”

They’ve never watched cable. They didn’t “cut the cord”—they never had a cord to begin with.

Easy fix: If you’re looking to find common ground over a TV series, pick something you know is on Netflix; or just stick to “Game of Thrones”—everyone watches that.

Being an influencer or a gamer is a current or future job opportunity. And, it can be quite lucrative. There are even a few advisers already specializing in this niche. To that point, Merrill Lynch had a booth at this year’s Twitchcon.

Semi-easy fix: Know the top social platforms, gaming platforms, and games – at least by name. Here’s a link to the top streamed games on Twitch in 2019.

They have a “fight the power” mentality. I mean, look at the political environment they’re growing up in.

Easy fix: When talking about financial decisions, always have an alternative. In fact, use your preferred approach as the alternative. For example, “People your age usually go with a 60/40 portfolio, but if you really want to push the envelope, you could go with a 70/30.”

They respond to edgy campaigns.

Easy fix: Slow down on the uber-professionalism. Not so much that you’ll be perceived as fake, but maybe try something edgy like having an Instagram account. Or…have some funny memes on the wall (if you don’t know what a meme is, well, you might be too far gone).

They prefer videos.

Easy fix and not-so-easy fix: Offer to meet over FaceTime. Then, use interactive video reports in lieu of quarterly paper reports. (I suspect we’ll see a bunch more vendors popping up who specialize here very soon.)

They’re global and more diverse than ever.

Easy fix: Make sure your office looks the same. And if it doesn’t yet, at least avoid the company pictures on the website where the whole team is together on a golf course with sunblock and polos. You know what I’m talking about.

They love giving their opinion! They grew up in a world where Instagram accounts become viral influencers by having nothing other than polls. This means, younger generations are following accounts for the sole purpose of giving their opinion.

Easy fix: Ask their opinion. About everything. Often. There are affordable—or free—survey tools that you can use, like Google surveys. And, they can be sent via text.

It also wouldn’t hurt to learn some of the lingo, or else your younger clients may be sus.

Stay cool.

Dani Fava

In her role as the director of innovation at TD Ameritrade Institutional, Dani Fava oversees the development of advanced investment management and technology tools designed to help independent registered investment advisers compete and thrive in a world of accelerating change. Having managed the launch of TD Ameritrade’s award-winning iRebal on Veo portfolio rebalancing technology, Fava rolled out the award-winning Model Market Center, TD Ameritrade Institutional’s innovative approach to bringing outsourced investment management capabilities to RIAs. Fava is also responsible for implementing voice-first capabilities at TD Ameritrade, which will employ conversational AI that can communicate with advisers. Fava joined TD Ameritrade in 2012 where she puts more than 15 years of wealth management knowledge to work. She was recently named one of the top 16 Women in Wealthtech, and one of the top influencers in Fintech and AI. She loves to talk about big data, finserv start-ups, artificial intelligence, CrossFit and basketball. Follow Dani on Twitter @DaniFava_TDA, for the latest in wealth tech.


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Grooming Future Clients by Teaching Them Financial Literacy at Young Ages

If you want to build predicative relationships that produce income, referrals and loyalty, then start seeding your network and community with financial literacy resources and experiences for kids.

Yes. You can get current clients and groom future clients by helping to make it easy for others to teach children about money while kids are young.

By others I am referring to parents, grandparents, caretakers, teachers and community leaders.

By young, I mean kids 3, 4 and 5.

You want to give families every chance to optimize their success as a unit and as individuals. This means starting the financial education and compound growth processes early, when they have the most impact and can make the biggest difference. You want to shape habits and feelings—not correct them—if you are lucky enough to do so.

Let this be clear and plain for everyone to see. Let this be a testament to who you are. As Garrett Planning Network founder, Sheryl Garrett shared with me, it is simple. When you invest in kids’ financial education, it sends a strong message on exactly what you value and stand for. Championing youth financial literacy and making it easy to teach kids about money tangibly demonstrates leadership, long-term thinking and social responsibility. It shows concern for families. It signals you understand the constant pressures they confront daily when it comes to managing money, including addressing the “gimmes.”

Nothing could be more organic and authentic than financial service professionals helping address one of the most significant challenges of the 21st century: youth financial literacy. It’s a threat to kids’ futures and the stability of family life. Kids who grow up with poor money habits and money mindsets seem more likely to turn into adults with those same behaviors, attitudes and feelings. In my opinion, it is a horrific cycle to cultivate and perpetuate.

Kids Know More About Money Than You Think

Here are two things you may not know.

One, adult money habits and attitudes are set by age 7 according to a 2013 Cambridge University study.

Two, research from Ecole Normal Supérieure in Paris, France reveals infants understand more than many adults think.

You may or may not believe the research. I believe it. Why? I have led financial education programs and experiences for more than a quarter million children in eight countries and nearly 40 states. I have talked to kids and the people who teach them a lot about money. What I can share with you with one-hundred percent certainty is, young kids have ideas, feelings and associations related to money.

If you are a doubter, start asking the children in your lives about money. Generate your own firsthand data on the relationship they are developing with it. Find out for yourself what we are hardwiring into their heads and hearts about this essential topic.

Do not be fooled by whether they are able to articulate cogent explanations of personal finance concepts and terms. Stay alert to what they say, think and feel about the subject. Tune in to their habits and attitudes.

What you may conclude is this is exactly the time you can be of the greatest assistance to kids, parents, grandparents, teachers and community leaders. It is precisely when the wealth builder versus spender battle is being won and lost. It is the determinative and pivotal point when you want to sow the seeds of financial freedom and security into kids’ thoughts, feelings and behavior patterns.

Be that voice and source of resources. Impart that financial knowledge for kids and families. Have them associate those memories and mindsets with you.

Here are some tips on how to go about it.

  • Volunteer to read to kids. Read them storybooks with a personal finance lesson. You can do it at schools, after school programs, youth clubs, community agencies or in your office. And/or you can provide clients and community organizations with story books and other “incentives” that teach children about money. Naturally, two of our favorite storybooks are Sammy’s Big Dream and It’s a Habit, Sammy Rabbit!
  • Offer parenting workshops on a monthly or quarterly basis. You can do them live or online via a webinar.
  • Include a parenting tips column in a newsletter or a blog.
  • Write columns for local newspapers and online blogs.
  • Survey and quiz clients, prospects and community leaders on what they learned about money as children. And, do the same with respect to what they are passing on to the kids in their lives whether they be their own children, grandchildren, nieces, nephews, students, etc.

Advising Parents on Teaching Money Skills

What should you advise parents to teach young kids’ money?

Start with and stick to the basics—saving, earning, spending smart, giving wisely, investing regularly and tracking your money.

Stress saving. Here is why. Saving has multiple benefits. It’s a cornerstone upon which many other money and success skills can be taught. Saving teaches discipline, delayed gratification, preparedness, planning and goal-setting. Saving protects us from poor spending choices. Saving positions us to invest with less risk. Saving provides more freedom and choices. Saving builds confidence and character. I strongly agree with pioneering research scientist Thornton T. Munger who said:

“The habit of saving is itself an education; if fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought and so broadens the mind.”

In terms of how to teach, I strongly favor strategies that are interactive or participatory. Learning by doing is one of my favorite education strategies. Keep things simple and “sticky” if possible—in other words easy to remember. Here are a few ideas for your consideration.

  • Give kids short money slogans on the core topics cited above that they can say out loud, write out, color or decorate. For example, three of my favorites are: Saving money is a great habit; earning money is fun to do; and save and grow.
  • Read kids storybooks with a personal finance lesson. Have them repeat key messages and phrases out loud.
  • Have kids play store, practice shopping and making change.
  • Have kids write out grocery lists. Or have kids make check marks on grocery lists.
  • Have kids organize and stack coupons.
  • Play personal finance games with kids.
  • Have kids make their own personal savings jar.
  • Sing and color with kids. Sammy Rabbit has several toe-tapping tunes that are available for free on Spotify and YouTube like: “Get in the Habit,” “S-A-V-E,” and “Lemonade Stand.”

If you can help ensure kids master these topics you will have set them up for financial success in life. Those are the kinds of relationships and memories everyone values!

Sam Renick

Sam X. Renick is an award-winning financial educator, children’s author and songwriter. He is the driving force behind Sammy Rabbit and his Dream Big Read financial education strategy. You can learn more about Sam and Sammy at SammyRabbit.com.


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Do These 4 Simple Things to Enjoy More Business Success in the New Year

Endings and beginnings serve as natural signals for us to stop and reflect, and the fading of one year into a new one is no exception. If you haven’t yet, block off a few days (or better yet, a full week) on your calendar and devote that time to some strategic business planning now in the new year.

You’ll want to look back at the previous year and honestly evaluate what worked, what didn’t, what moved the needle toward success and what you may need to change going forward. Hopefully, going through this process will allow you to identify some actions to take in this new year.

Just in case you need a little help, allow me to suggest a few very simple things to try that could create some massive shifts toward success for you and your business. Some of these tweaks are changes in mindset, others are more tangible to-dos you can implement. But they’ll all help contribute to a more productive, creative and, hopefully, profitable 2019.

1.) Get Crystal Clear on Who You Want to Reach

If your answer to the “Who do you work with?” question is, “Individuals and families,” it’s time to do a little market research. Understanding the specific people you serve is critical to a number of functions in your business, from business development to marketing to customer service to client success and more.

After all, the clients in your book of business are real people who are just as complex, nuanced and complicated as you are. To reduce them to a general, bland group like “individuals” is disrespectful—and it also puts you at a massive disadvantage.

Why? Because it’s hard to effectively communicate in a way that persuades, delights and influences your target audience if you have absolutely no clue what makes them tick, what matters to them, what keeps them up at night and what worldview they operate with.

Be able to list off not only your ideal clients’ demographic information (age, location, earnings, ethnicity, gender, job sector, etc.) but more importantly, know their psychographic information: their fears, beliefs, values, desires, needs, dislikes and more.

2.) Eliminate What’s Not Essential

At a conference I spoke at recently, an audience member asked a great question that was about content marketing but could apply to just about any aspect of your business. This attendee asked how he could avoid becoming “the dancing bear.”

In other words, how could he avoid getting caught in the trap of producing content for the sake of throwing something out there to entertain followers day after day after day?

The answer is that you don’t have to hit publish all the time. You just don’t. Sometimes, it’s not essential—and if you come across a non-essential task, it’s a good candidate to cut from your to-do list entirely. There will be times when you don’t have anything to say. So don’t say anything. Make the choice between adding to the noise or waiting to be the sign.

Whether it’s content marketing or any other aspect of your business, quality likely matters more than quantity. Look at what you’re currently doing and ask, “What’s essential here? What’s serving a function that moves the needle—and what’s just noise, busywork, clutter or being done for the sake of quantity rather than quality?”

3.) Understand What Really Fuels Creativity

How many projects for your business have you put off because you weren’t feeling creative or inspired? It’s natural to feel like you’ll do your best work when you feel particularly compelled to act, but there’s a problem with that: creativity is not fueled by inspiration. It’s fueled by work.

Here’s an example of what I mean. I get some version of the question, “You write so much—how do you stay so inspired?” all the time. I understand why. I do write so much. (I once tried to estimate just how many words I manage to write in a month and the total easily topped a couple hundred thousand written words—every month!)

Many people assume I must be extremely creative, highly gifted or constantly inspired (or some combination of all three). The truth is, I have a system and I stick to it. If I only created content when I felt inspired, I wouldn’t write a thing. I’m able to create so much because I take the work of creating very seriously and I sit down to do that work regardless of whether I’m feeling particularly creative or inspired.

If you can make this shift for yourself and understand that putting off important projects until inspiration strikes is a sure way they’ll never get done, you may find yourself a little more productive—maybe even prolific—in the new year.

 4.) Invest in Personal, Not Just Professional, Development

Stick with me here, because it’s going to get a little woo-woo. Most of us are perfectly comfortable with spending money on professional development; we’re happy to fly to conferences, gather up CE opportunities or invest in specific training courses.

Too few of us, however, are willing to make the same investment into our personal development. That’s problematic because by skipping over the personal aspect of developing yourself, you’re missing out on huge opportunities to run a better business.

Personal development can help you improve your decision-making skills thanks to the understanding it can give you of your own thought processes. Self-awareness is critical for anyone in a high-powered position, from lead adviser to firm owner, because it allows you to better spot potential flaws in your own thinking.

Similarly, personal development work can help you uncover blind spots that you didn’t even know you had. The more things you didn’t know that you can discover, the better you’ll be at shoring up weaknesses or gaps in knowledge, skills or abilities.

And finally, I’d argue that investing in your personal development simply makes you a more engaging, interesting, thoughtful person that others tend to gravitate toward. You’ll likely improve your communication skills, boost your emotional intelligence and radiate confidence and a sense of groundedness in who you are and what you want to accomplish in your business and your life.

KaliHawlk
 Kali Roberge is the founder of Creative Advisor Marketing, an inbound marketing firm that helps financial advisers grow their businesses by creating compelling content to attract prospects and convert leads. She started CAM to give financial pros the right tools to build trust and connections with their audiences, and loves helping advisers find authentic ways to communicate in a way that resonates with the right people.